Globalization. What Is Globalization? Globalization is the process of national economies, politics, cultures, and societies become combined and integrated.

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Presentation on theme: "Globalization. What Is Globalization? Globalization is the process of national economies, politics, cultures, and societies become combined and integrated."— Presentation transcript:

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How Do the Developed Countries Control? Developed countries outsource, or send work to developing countries to get the job done more cheaply and effectively. India, Russia, China, and the Philippines

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How Do the Developed Countries Control? (Cont.) Developed countries also control through multinational corporations. These are companies that are located and buy and sell goods in multiple countries around the globe.

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When supply of something, such as oil or money, is changed, then the entire global economy could be affected. How Do the Developed Countries Control? (Cont.)

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How do Developed Countries Control? (Cont.) A financial crisis in one country could spread to other countries and create crisis there.

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What are the affects of globalization and free trade on America and the rest of the world?

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Affects of Globalization The U.S. has the worlds largest economy. U.S. leads the world in exports U.S. leads the way in new technology industries

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Globalization Cont. U.S. economy is greatly affected by international markets. U.S. no longer dominates the world manufacturing market

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U.S. Domination? U.S. is biggest borrower in the world! Huge Budget deficits Large trade deficit instead of trade surplus

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Results of Free Trade U.S., Japanese, and Western Europeans per capita income and economy has increased. U.S. takes advantage of a cheap labor force. Foreign companies take advantage of the American market.